ECONOMIC ANALYSIS OF COMMERCIAL SURROGACY

Abstract

The phrase “surrogate motherhood” in its varied semblances means, “substitute motherhood” for the genetic-biological mother. It includes all methods whereby a woman bears a child for another woman, in her own womb, which she hands over to her employer at the time of birth. With what started as only kith and kin of the infertile couple bearing the child, surrogacy is now a flourishing business in several countries such as U.S.A, India, Georgia, Russia and in particular Thailand, which has extended beyond the realm of close relatives to women with no relationship to the couple for sake of retaining anonymity. This arrangement is fuelled by strict contractual and financial agreements. An increasing number of infertile couples use surrogacy because of the lengthy legal procedures for adoption and the couples’ desire of having a genetically related child. Unfortunately, surrogacy is accompanied with myriad negative effects on the surrogate mother’s health. With the growing phenomenon of surrogacy remedying childlessness, there is a sleuth of problems that accompany it such as cross-border legal and ethical issues, which are gaining prominence. Certain countries such as Thailand whose economies thrive on the income derived from commercial surrogacy contracts from foreigners have gone to the extent of imposing a ban on the same in the light of unethical practices related to surrogacy. In various other countries, the dominant view is that surrogacy in itself is not derogatory towards women but rather such contracts which entail a profit from such transactions. Altruistic surrogacy was seen as the saving grace for infertile couples whilst keeping the practice within the confines of public policy. Altruistic surrogacy is when a surrogate is given no financial gain for carrying a child. Only realistic out of pocket expenses are covered by the intended parents. E.g. medical costs, travel, time off work, etc. Thus unlike commercial surrogacy, it is not seen as a source of employment or income but is an act done in good faith. Now this seems to be the ideal conclusion and plan of action. Commercial surrogacy seems to be the inhumane alternative whereas Altruistic surrogacy served the purpose ensuring full consent and preservation of rights. However a model where the former is outlawed and the latter is allowed would work only in countries where the liberal democratic principles have led to an efficient implementation and enforcement of law, Australia in particular. What must be noted is the standard of living of an average Australian does not give rise to the necessity of partaking in Commercial surrogacies. So we’re typically talking about countries that are still developing and thus have a certain level of poverty and unemployment that would be affected if commercial surrogacy were outlawed, countries like India and Thailand in particular. 

This paper attempts to draw out the most efficient solution for developing countries and in doing so analyses the costs and benefits of outlawing commercial surrogacy with the assumption that Altruistic surrogacy would serve the same purpose minus the violations towards the rights of the mother and newborn.